Nasdaq decline extends to 1%

News

Early trading showed some resilience in equities but that’s quickly evaporated. The selling picked up after the soft US services PMI and that’s interesting because it means that the bad-news-is-good-news narrative is failing. That’s because the Fed appears to be determined to hike despite mounting signs of a slowdown.

Said another way, the market is growing more worried about a tougher recession.

Technically, this looks like a head-and-shoulders top with a target at 10,400, or another 3% lower from here. I can certainly see a case where we close near the lows of the year.

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